Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 9 of 9 - / 15 III View Policies Current Attempt in Progress Blossom Company bottles and distributes B-Lite, a diet soft drink. The
Question 9 of 9 - / 15 III View Policies Current Attempt in Progress Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,950,000 Selling expenses-variable $67,000 Direct materials 550,000 Selling expenses-fixed 61,000 Direct labor 350,000 Administrative expenses-variable 28,000 Manufacturing overhead-variable 370,000 Administrative expenses-fixed 59,250 Manufacturing overhead-fixed 260,000 Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.) BLOSSOM COMPANY CVP Income Statement (Estimated) Total Per Unit $ $ $ > > $ > > ta $ e Textbook and Media Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle $ e Textbook and Media Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to O decimal places, e.g. 1,225.) (1) Break-even point units (2) Break-even point $ e Textbook and Media Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio % Margin of safety ratio % Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio % Margin of safety ratio % e Textbook and Media Determine the sales dollars required to earn net income of $210,000. Required sales $ e Textbook and Media
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started